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TMI Blog2018 (6) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal by the assessee is dismissed. - ITA No.1307/Bang/2018 - - - Dated:- 4-6-2018 - SHRI N.V. VASUDEVAN, JUDICIAL MEMBER For The Appellant : Shri Sukesh S. Patil, CA For The Respondent : Dr. Nagendra Rebelly, Addl.CIT(DR)(ITAT), Bengaluru. ORDER This appeal by the assessee is against the order dated 30.01.2018 of the CIT(Appeals), Gulbarga relating to assessment year 2014-15. 2. The assessee is an individual. He derives income from carrying out work as a contractor. In the course of assessment proceedings, the AO noticed that there were cash deposits in two bank accounts in the name of assessee in Bank of India, Gulbarga totaling ₹ 1,16,80,800. The assessee was asked to explain the source of funds out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave confirmation wherein there was no details except the name of the creditors. There was no evidence to prove the identity of the creditors. It was also noticed by the CIT(A) that the source of funds for which the creditors were claimed to be agricultural income, but no evidence of agricultural land holdings by these parties were filed. All the confirmation letters were in stereo type form. Taking note of all these circumstances and applying the principle laid down by the Hon ble Supreme Court in the case of Sumati Dayal v. CIT, 214 ITR 801 (SC), the CIT(Appeals) was of the view that the assessee did not satisfactorily explain the source of funds, out of which cash deposits are made into his bank account. The addition made by the AO was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,00,000 13-06-2013 2,00,000 19-11-2013 15,00,000 01-07-2013 2,23,800 21-11-2013 15,00,000 30-10-2013 2,00,000 29-11-2013 15,00,000 14-11-2013 13,00,000 08-02-2014 8,00,000 18-11-2013 8,00,000 08-02-2014 5,00,000 12-02-2014 5,00,000 10-03-2014 15,000 Total (A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,00,000 05-06-2013 85,000 24-02-2014 1,00,000 08-06-2013 1,00,000 10-03-2014 1,00,000 20-06-2013 3,00,000 17-03-2014 2,00,000 20-06-2013 1,00,000 21-03-2014 60,000 Total (A) 18,00,000 Total (B) 29,20,000 Cash Withdrawals with Bank of India A/c 84851010000666 4: 07-10-2013 1,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no evidence to show that the amount withdrawn were utilized by the person withdrawing money in some other manner. In such a situation, the peak credit theory is applied and the addition is restricted only to the highest deposit (peak credit) over a period of time. The assessee has not filed any chart to show what is the peak credit based on the pattern of deposit and withdrawal of money by assessee. If assessee does not want to apply the peak credit theory, then the addition to the extent of difference between the sum of ₹ 1,16,80,800 which is the total deposits in the bank account and ₹ 87,50,000 which is the withdrawal from the very same bank account has to be added to the total income. If such a course is adopted, the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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